According to the US Dept of Labor, the new Exempt/Non-Exempt worker rules will result in the following:Workers directly affected. 4.2 million salaried workers will be affected by this rule based on their salaries. These workers are currently ineligible for overtime. The Department estimates that most of them (4.1 million) will become eligible for overtime when they work more than 40 hours (i.e., they will be converted to overtime-eligible status), while others(100,000) will receive a raise so that their salary is above the new threshold.Workers indirectly affected. 8.9 million salaried workers (3.2 million blue collars and 5.7 million white although their salaries are above the current salary threshold, their duties do not meet the exemption for executive, administrative, or professional workers. Under the final rule, their eligibility for overtime will become clearer because their salaries will fall below the new threshold—and no assessment of their duties will be necessary. Out of the 5.7 million white-collar workers, approximately 732,000 are overtime-eligible, but their employers don’t recognize them as such and do not pay them the overtime which they deserve when they work more than 40 hours.Is your payroll system ready to accept these changes for your workers? Specifically, does it accurately calculate all hours and payments eligible for overtime? Does it correctly compute a worker’s “regular wage,” upon which the overtime premium is based?In 2016, President Obama’s Dept. of Labor redefined the rules that make workers exempt from overtime. Mainly, it approximately doubled the pay a worker must earn before they can be considered exempt. But what they didn’t change is even more important. Workers always had to perform certain duties and functions on a regular basis in order to be considered exempt. Those that do not meet these requirements are automatically eligible for overtime as governed by the laws of the state they work in.Learning Objectives More on the new rules affecting overtime payDifferences between federal and state lawsWhen does state law applyHow to determine the number of hours worked before overtime must be paidDetermining the regular rate of payComputing back wages for overtime purposesHours that are exempt for overtime purposesRules regarding compensatory time offThe effect on overtime calculation of stock options, commissions, and retroactive pay increasesPenalties for non-compliance with applicable lawWho Should Attend Payroll managersPayroll staffDepartment managersFinancial executivesInternal and external auditorsHuman resource managers